Essay report

BETWEEN 400 AND 500 WORDS I just would like you to rewrite this with the same sources because most of the sentences come from the web:

Opportunity refers to “a situation in which a person can exploit a new business idea that has the potential to generate profit (Shane, 2003). Contrary to what Alvarez say, there is a third approach concerning the opportunities identified by Sarasvathy, Venkataraman, Dew and Velamuri (2002) in the work titled ‘Three Views of Entrepreneurial Opportunity’ which is the allocative theory. “Created” and “discovered” refer to the method in which the opportunity was realised. One effective way that Sarasvathy, Venkataraman, Dew and Velamuri (2002) differentiate between creation, discovery and, their own, allocative theory is through what they call the ‘domain of application’. This refers to the level of knowledge in the market. Indeed, when the supply and the demand for the product is known then the opportunity is founded through the allocative process, when only one of the two variables is known then the opportunity has been discovered, and when neither supply or demand is known, the opportunity has been created. The creative theory suggests that ignorance is the most important aspect of opportunity creation and that the supply and the demand of the product or services does not exist yet. Therefore at least one of these needs has to be created and produced by the entrepreneur (Sarasvathy, Venkataraman, Dew and Velamuri, 2002). Thus, the entrepreneur will have created a new market opportunity. For a market opportunity to be considered as opportunity creation, the business venture would need to be completely new, with no prior knowledge available for the entrepreneur making the future of the market unknowable. This is what Knight called true uncertainty. However, creative opportunities are not the only process that can occur, this does not prove that opportunities cannot be discovered. The method of opportunity discovery is the idea that only one market variable is known which can be either the supply or the demand for the product or service. Therefore, the market exists but is unknown in advance. Alvarez (2007) describes this type of entrepreneurial opportunity as an opportunity which is “just waiting to be discovered and exploited by unusually alert individuals”. The entrepreneur is literally discovering or finding the market. This means that when the one side of the market exists, the other unknown side of the market is discovered. This shows that it is possible that entrepreneurial opportunities are not just created, but they can also “be discovered and exploited by unusually alert individuals” Alvarez (2007). The other method of entrepreneurial opportunity realisation is known as opportunity recognition. The allocative process occurs when both market forces are known, that is when supply and demand can be calculated or measured to a degree of accuracy. Due to this, opportunity recognition involves the least amount of risk for the entrepreneur when compared to the discovery method and especially the creation process